Oil prices increased on Wednesday over hopes that major oil producers of OPEC+ will keep production levels unchanged for May\u00a0and\u00a0despite estimates of a build in US inventories.<\/p>\n\n\n\n
International benchmark Brent crude was trading at $64.52 per barrel at 0620 GMT for a 0.54% increase after closing Tuesday at $64.17 a barrel.<\/p>\n\n\n\n
American benchmark West Texas Intermediate (WTI) was at $60.89 per barrel at the same time for a 0.56% rise after it ended the previous session at $60.55 a barrel.<\/p>\n\n\n\n
The upward movement in oil prices was mainly driven by optimism that the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries, known as OPEC+, would maintain the current production quotas in line with the market expectation.<\/p>\n\n\n\n
Scheduled to meet on Thursday, the group will decide whether to keep the current cuts or ease them further after April.<\/p>\n\n\n\n
Confirming expectations, OPEC Secretary-General Mohammad Barkindo emphasized \u201cthe need to remain very cautious and attentive to changing market conditions\u201d during Tuesday\u2019s Joint Technical Committee (JTC).<\/p>\n\n\n\n
Barkindo warned that while last month saw many positive developments, it also witnessed reminders of the ongoing uncertainties and fragility caused by the COVID-19 pandemic.<\/p>\n\n\n\n
OPEC and non-OPEC producers are currently cutting 7.9 million barrels per day (bpd) under the existing deal, with Saudi Arabia making an additional voluntary reduction of 1 million bpd.<\/p>\n\n\n\n
The price hike came despite an estimated rise in US crude oil inventories.<\/p>\n\n\n\n
Late Tuesday, the American Petroleum Institute (API) announced its estimate of a rise of over 3.9 million barrels in US crude oil inventories relative to the market expectation of a 400,000-barrel increase.<\/p>\n\n\n\n
If crude stocks increase in line with the API\u2019s expectations, it signals that crude demand is falling in the US, the world’s largest oil consumer, to negatively affect oil prices.<\/p>\n","protected":false},"excerpt":{"rendered":"
Oil prices increased on Wednesday over hopes that major oil producers of OPEC+ will keep production levels unchanged for May\u00a0and\u00a0despite estimates of a build in US inventories. International benchmark Brent crude was trading at $64.52 per barrel at 0620 GMT for a 0.54% increase after […]<\/p>\n
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